Former BP CFO says windfall tax has shut down UK investment

Brian Gilvary, chairman of Ineos Energy and former chief financial officer at BP, asserts that the United Kingdom has effectively ceased attracting new capital into its energy sector. This stark conclusion follows a recent announcement by BP regarding the sale of its domestic operations, marking it as the last major international oil company to confirm intentions to exit the North Sea entirely.

Unlike competitors such as Shell, TotalEnergies and Equinor who have opted for joint ventures or retained stakes through asset sales that subsequently faltered, BP has chosen a definitive departure. Gilvary attributes this exodus primarily to fiscal instability caused by the energy profits levy combined with restrictions on new exploration licensing. He contrasts the UK environment unfavourably with Norway, noting that while British investment is stagnant, Norwegian activity continues at ten times the current rate.

The former executive argues that without a stable regulatory framework from successive governments, the North Sea remains unattractive to investors. He highlights an ironic situation where Britain relies on gas imports from Norway, meaning consumers and taxpayers ultimately subsidise foreign production while domestic potential goes untapped. Gilvary warns that abandoning this basin risks eroding high-quality jobs, reducing tax revenues for the state, and increasing dependence on imported energy sources.

Ineos Energy has mirrored these sentiments by planning to redirect investment towards the United States, citing superior fiscal regimes there. Earlier in 2025, Ineos signed an agreement with Shell to increase production volumes in the Gulf of Mexico, a move Gilvary describes as validating his warnings about capital flight from Britain.

BP chief executive Meg O’Neill recently stated that her company would simplify its portfolio based on value rather than sentiment or historical ties. Although she acknowledged the North Sea remains integral to the UK energy system, she believes selling assets positions their business better within another corporate structure. Gilvary served as BP’s financial leader for eight and a half years until June 2020.

He cautions that if current trends persist, Britain risks losing not only production capacity but also the skilled workforce, supply chains and economic value built up over decades. The decision to sell assets underlines the severe consequences of the prevailing approach taken by policymakers. Gilvary concludes that while demand for oil and gas has not vanished, increasing reliance on imports represents a choice made by government rather than market necessity.

The implications extend beyond simple financial metrics, affecting broader economic stability and energy security goals set out in national strategies.